(10) Use Strict Stop Loss Order
It is one of the basic day trading rules for intraday traders. Stock markets are highly volatile in nature. This volatility not only increases your profits but it can also increase your losses.
You can cut your losses using stop loss order. Stop order is a trigger for covering your position if the price moves beyond a specified limit.
It is a vital part of share trading particularly day trading. Unfortunately, most of the day traders underestimate its significance & avoid using it.
You should always use a strict stop loss order to limit your losses in an untoward situation. You should never change the position of stop loss order during the day.
However, if your stop loss order gets triggered, exit from your positions for the day.
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